General Motors has completed a fiscal year in which it has gone from less to more. In the fourth quarter of the year, its earnings rose 16% (up to $1,999 million, about $1,840 million at current exchange rates) to $43,108 million thanks to strong pull of 28% of revenue. However, full-year earnings fell 1%, proving electric carmaker Tesla the new US leader in all-wheel drive by earnings.
For all of 2022, the Detroit giant’s revenue grew 23.4% to $156,735 million. After several years when chip shortages and other supply chain bottlenecks weighed on sales, General Motors was able to raise prices and increase sales despite selling fewer cars. There were 5,939,000 vehicles sold in 2020, compared to 6,296,000 a year earlier, according to figures released this Tuesday. In the fourth quarter, however, sales are already growing again, especially in the USA.
Increased costs and various special items (including a charge of 657 million for the business in Russia and another 511 million for the dealer buyback of its Buick brand) caused profit to fall 0.8% to 9,934 million.
Tesla, the firm signed by Elon Musk, earned 12,556 million despite billing 81,462 million, just over half that of General Motors thanks to the higher margins given by the low diversification of models and the Gigafactory system are.
“General Motors led overall industry sales in the United States and saw the largest year-over-year increase in market share of any manufacturer, driven by strong demand for our products and improving supply chain conditions,” said he, the group’s president and CEO , Mary Barra, in a letter to shareholders.
Barra points out that adjusted net operating income hit a record $14.5 billion, but acknowledges it will fall significantly this year. The forecast for analysts and investors is in a range of 10.5 to 12.5 billion US dollars. According to the company, net profit will be between 8,700 and 10,100 million dollars, which will most likely also fall in a year in which the rise in interest rates in the United States, its main market, will make it difficult to buy rental cars and the foreseeable deterioration in the economy will increase demand dampen That could force the company to apply sales discounts, as Tesla has already done.
The company relies on electric cars and invests in autonomous driving. The Company will jointly invest with Lithium Americas in the development of Thacker Pass in Nevada, the largest known lithium deposit in the United States and the third largest in the world, the Company said. The $650 million investment is the largest by an electric vehicle battery maker in the United States, and Lithium Americas expects the lithium mined and processed at the project will enable the production of up to a million electric cars per year. The start of production is planned for the second half of 2026.
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